Islamabad: Possibilities of an amnesty scheme extension, along with revising excessive valuation of immovable properties for the real estate sector, is currently under government consideration, according to news sources.
Sources
reveal that the Federal Board of Revenue (FBR) has yet not been engaged to
formulate a general amnesty scheme covering all kinds of movable and immovable
properties (owned by locals or expatriates). Incentives for the real estate
sector are expected in the relief package being finalised for the construction
sector.
Reportedly, the government may also waive off the condition of the revealing source of investment on legalisation of real estate assets purchased during last year – to encourage investment.
Moreover,
the government is also considering to provide tax relief and special incentives
to businesses associated with the construction sector. This relief package is
aimed at supporting the government’s low-cost housing programme. A simple fixed
tax regime is also finalised for the developers and builders –offers a 90%
reduction in tax for low-cost housing schemes.
As
per sources, following incentives are likely to be offered:
National (central) jurisdiction of builders and
developers
Simplified return forms
Project-by-Project income computation
Dispute resolution committee
Builders and developers no longer required to act as ‘withholding
agent’
For commercial buildings in Lahore, Karachi,
Islamabad, Hyderabad, Sukkur, Faisalabad, Rawalpindi, Gujranwala, Peshawar,
Sahiwal, Mardan, Abbottabad, Quetta and other unspecified urban areas, the tax
rate will be PKR 20 per sq ft
For low-cost housing schemes, the tax rate will be
slashed by 90%
The requirement of independent certification from the National Engineering Services Pakistan (NESPAK) and a tax rate
of PKR 210 per sq ft for commercial developers.
Hazafa reveres the art of writing and has been turned into a property enthusiast by profession. Her daily survival kit includes; tea, coffee, keyboard and paperbacks.
